Real estate commission rules change soon. What to know about the average rate and more

Catherine Reagor, Arizona Republic
2 min read
2

Arizona real estate agent commissions are slightly below the U.S. average.

The average rate homeowners pay to sell an Arizona home is about 5.44% of the house’s price, according to Clever Real Estate’s national survey of real estate agents. The U.S. average is 5.49%, and in some state's the average is above 6.5%

But real estate commissions are changing after a $418 million National Association of Realtors settlement over how much homebuyers pay agents. NAR didn’t admit guilt or liability.

Many home sellers think the deal could save them money because they won't have to pay commissions on behalf of buyers, which is pretty typical now.

Some home buyers, particularly first-timers, are concerned they will have to come up with money to hire a real estate agent.

At an average of almost 5.5%, the typical commission on a median-priced Valley house costing $440,000 is about $24,000.

Negotiation, negotiation, negotiation

New rules because of the Realtors' settlement prohibit offers of compensation on multiple listing services. Home sellers had alleged in lawsuits that real estate agents steered buyers to houses with sellers offering higher commissions.

Agreeing on commissions is already a big part of the home sale process, and consumers can continue to negotiate with agents.

“Remember, real estate agent fees aren't set in stone and can vary depending on where you live, the kind of property you're selling, and how the housing market is performing in your area,” said Steve Nicastro of Clever Real Estate.

Another new rule will require multiple listing service real estate agents working with buyers to have written representation agreements, according to the Arizona Realtors.

When real estate commissions will change

The new rules are set to go into effect this summer.

"If you sell or buy a home this spring or summer, expect your agent to be uncertain about the answers to some of your questions,” said mortgage expert Holden Lewis with Nerd Wallet. “When you do get answers, they might change as more information comes in."

About 89% of buyers last year purchased their homes through a real estate agent or broker, according to the National Association of Realtors.

West Virginia had the highest average real estate commission at 6.67%, according to Clever. Utah had the lowest at 4.9%.

Reach the reporter at catherine.reagor@arizonarepublic.com or 602-444-8040. Follow her on X, formerly Twitter: @catherineReagor.

This article originally appeared on Arizona Republic: Real estate commissions in Ariz.: What's average rate, what may change

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